Bitcoin’s on-chain transaction fees have become a topic of debate as the cost of sending BTC has surged.
According to data from BitInfoCharts as of December 17, the average transaction fee stands at nearly $40, marking the highest average since April 2021.
This spike in fees is attributed to the recent wave of Bitcoin Ordinals inscriptions, resulting in elevated costs for all network users.
Mempool.space reports a vast backlog of unconfirmed on-chain transactions, with even $2 transactions having no on-chain priority.
Currently, there are approximately 350,000 transactions waiting to be confirmed, making casual on-chain spending unfeasible for many smaller investors.
This situation has sparked a heated debate among Bitcoin proponents.
While some are critical of the impact of Ordinals on fees, others argue that double-digit transaction costs are a glimpse into the future. They emphasize the need for embracing layer-2 solutions like the Lightning Network to accommodate mass adoption.
Popular commentator Hodlonaut believes that demanding low fees for “Level 1” transactions is not only ignorant but also detrimental to Bitcoin’s competition-based nature and long-term value.
Hodlonaut suggests that if users can’t afford to move funds on the base layer in the long run, it makes more sense to explore alternative cryptocurrencies like Bitcoin Cash or embrace layer-2 solutions.
Despite the rising fees, Bitcoin continues to function as intended, according to commentator Beautyon.
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He posits that Ordinals might expedite the adoption of layer-2 solutions, leaving those who haven’t embraced them confused and upset but ultimately adhering to the network’s rules.
Bitcoin veteran Adam Back, co-founder of Blockstream, shares the perspective that expanding layer-2 capabilities is the way forward.
He believes that attempting to halt certain transactions on the Bitcoin network will only lead to more creative workarounds. High fees can drive the adoption of layer-2 solutions and stimulate innovation.
In terms of mining revenue, data from Blockchain.com shows that miners are enjoying their best USD revenues in two years.
This aligns with Bitcoin trading at around $42,000 toward the December 17 weekly close, although it remains significantly below its all-time high of $69,000 reached in November 2021.
In conclusion, Bitcoin’s on-chain transaction fees have risen sharply, sparking debates within the community.
While some see this as a temporary issue, others view it as a catalyst for the adoption of layer-2 solutions, emphasizing the need to adapt and innovate in the evolving cryptocurrency landscape.
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